Zero-Based Budgeting (ZBB) is a modern approach to budgeting in which every activity and expenditure must be justified from the beginning of each budget period. Unlike traditional budgeting, it does not simply take the previous year’s budget and add or subtract a percentage. ZBB starts from a “zero base” and evaluates all proposed expenses according to their need, usefulness, and contribution to organisational objectives. Definition: Zero-Based Budgeting is a budgeting technique in which all expenses are reviewed and justified for each new budget period, regardless of whether they existed in the previous period. Managers are required to prepare detailed proposals for activities and resources, and funds are allocated only to those activities that are considered necessary and beneficial. Objectives: The main objective of ZBB is to ensure the optimum use of organisational resources. It aims to eliminate unnecessary and wasteful expenditure by carefully examining every activity. It also helps management identify priorities and allocate funds according to organisational goals. Another objective is to improve managerial efficiency and